Marketing Strategies adopted by Amway in India

1. Marketing Strategies
adopted by Amway
in India
SUBMITTED TO SUBMITTED BY
MR. RAJEEV MATHEW VIVEK TYAGI

2. AMWAY
 An American company specializing in the use of multi-level marketing to
sell
1)health,
2) beauty, and
3)home care products
 Direct selling portfolio of 450 products
Amway promoted around 3,000 products through catalogue sales

3. AMWAY INDIA
 Amway had received permission from the Foreign Investment Promotion Board (FIPB)
in 1994, to invest $15 million in the Indian operations and to source products from
India
 The company began with identifying small and medium-scale companies to source its
products .
 Amway also conducted market research through agencies such as Pathfinders and
ORG-MARG
 Amway did recognize the need for a special India-specific pricing strategy and
eventually there were just a few marginal cuts in the prices

4. AMWAY INDIA
 Selling Products through Direct Selling
In the late 1990s, Amway had to deal with the negative attitude of many Indians to
direct selling, The salespeople were poorly trained and lacking in motivation.
 Problem with the Communication Gap
The distributors themselves were unsure about the price-value equation of the products
they were selling, they could not effectively convince the consumers either

5. AMWAY INDIA
 Selling Products through Distribution Channels
Most of the products that the distributors bought, they consumed themselves. Estimates
put the percentage of self-consumption at almost 50-60% of the total volume.

6. Amway’s Gamble in India
 In a bid to make its products more affordable, Amway introduced value-for-money 'chhota
(small) packs' in December 1999
 Sachets had two advantages - they helped Amway shake-off the 'super-premium-products-
only' tag, and with their lower prices invited consumers from lower income levels to try the
products.
 Amway believed that the Indians would gradually move to online shopping. Amway
provided graphics and three-dimensional views in the product display sections on its
website. The company also planned to have portals in various Indian languages to ensure
wide coverage.

8. THANK YOU